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Overview

Open to

Accredited investors

Target IRR¹

10 – 12%

Min. initial investment

$25,000

Anticipated term

At least 10 years

Tax reporting

Form 1099-DIV

The Fundrise Opportunity Fund seeks to acquire high-quality real estate properties located in designated Opportunity Zones that have strong long-term growth potential. The Fund intends to meet the requirements necessary to qualify as an Opportunity Fund as defined in the Tax Cuts and Jobs Act of 2017 in order to avail investors of the substantial tax-related benefits provided under the bill.

The Fund is managed by Fundrise Advisors, LLC, a registered investment adviser with the SEC² and wholly owned subsidiary of Rise Companies Corp, the parent company of Fundrise. As of June 30, 2018, Rise Companies Corp, as a sponsor, has originated and invested in real estate with an aggregate purchase price of $2.3 billion, and manages eight proprietary real estate investment vehicles.

The Fund anticipates an investment term of no less than 10 years in order to capture the full tax benefits offered under the tax code for Opportunity Funds.

1. There can be no assurance that such performance will be achieved, and investors may be subject to partial or total loss.
2. Registration with the SEC does not imply a certain level of skill or training.

Example business plan

Historic renovation in an emerging Washington, DC neighborhood

The existing distressed property

Illustrative rendering of finished project

Our first acquisition is located on the corner of Fourth Street NW in the heart of Washington, DC’s historic LeDroit Park neighborhood. Founded in 1873 as a suburb of the nation’s capital, the neighborhood was originally designed to attract affluent homebuyers, with romantic, tree-lined streets and ornate architecture. To this day, it is still home to some of the best-preserved Victorian architecture in the city.

Originally a thriving planned community, LeDroit Park fell into decline after the 1968 riots.

Along with other neighborhoods in the area, LeDroit Park suffered significant damage during the riots of 1968. Over the last two decades, it has experienced a resurgence, with many homes restored to their original grandeur.

The Fourth Street property was originally a mixed-use building with neighborhood-serving retail on the first floor, and apartments on the second and third. Since that time, the property had been slowly deteriorating. The retail portion of the building has been without a certificate of occupancy for nearly 20 years.

The Fundrise Opportunity Fund acquired the property in July 2018. We plan to completely restore the original historic structure, expand the residential floor area with a modern addition, and bring the original retail component back to life.

Holdings

The Fundrise Opportunity Fund is currently ramping up and
plans to acquire these and other properties in the near future.

About the sponsor

Founded in 2012, Fundrise’s experienced team of 64 professionals manages eight real estate investment vehicles publicly reporting to the SEC.

Fundrise invested in, manages, or owns over $2.3 billion in real estate nationwide with over $426 million aggregate funds raised across our programs.

Annual returns4

2014

12.25%

2015

12.42%

2016

8.76%

2017

11.44%

Real estate track record5

$2.3B

Total value of real
estate originated

$426M

Aggregate funds
raised

181

Real estate
investments

56

Investments
fully paid back

4. Specifically, the time-weighted weighted average annualized total returns of Rise Companies Corp sponsored deals. Learn more about the assumptions in this section, or view our full disclosure.
5. As of June 30, 2018, none of the Rise Companies Corp sponsored deals have suffered any loss of principal or projected interest; however, there can be no assurance that such performance will continue in the future.

Top questions

What is an Opportunity Fund?

An Opportunity Fund is a new investment vehicle created as part of the Tax Cuts and Jobs Act of 2017 to incentivize investment in targeted communities called Opportunity Zones.

What are Opportunity Zones?

Opportunity Zones are census tracts designated by state and federal governments targeted for economic development.

Why invest in Opportunity Funds?

Opportunity Funds allow investors to defer federal taxes on any recent capital gains until December 31, 2026, reduce that tax payment by up to 10%, and pay as little as zero taxes on potential profits from an Opportunity Fund if the investment is held for 10 years.

What are the annual fund fees?

Up-front fees / commissions

None

Annual investment management fee

0.75%

Annual tax and accounting fee

0.45%

Annual carried interest / promote

15% over 8% return

For a full description of additional fees that each investment may incur, please see the private placement memorandum.

Fundrise, LLC (“Fundrise”) operates a website at fundrise.com (the “Site”). The information contained on the Site neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited, and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Site neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind.

Google Play and the Google Play logo are trademarks of Google LLC.

Apple, the Apple logo and iPhone are registered trademarks of Apple Inc.

Fundrise, LLC (“Fundrise”) operates a website at fundrise.com and certain mobile apps (the “Platform”). By using the Platform, you accept our Terms of Service and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Neither Fundrise nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. Neither Fundrise nor any of its affiliates assume responsibility for the tax consequences for any investor of any investment. Full Disclosure

The publicly filed offering circulars of the issuers sponsored by Rise Companies Corp., not all of which may be currently qualified by the Securities and Exchange Commission, may be found at fundrise.com/oc. For investors and potential investors who are residents of the State of Washington, please send all correspondence, including any questions or comments, to washingtonstate@fundrise.com.

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